Evidence of meeting #51 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreed.
A video is available from Parliament.
Liberal
The Chair Liberal Wayne Easter
Shall clause 149 carry on division?
(Clause 149 agreed to on division)
(On clause 150)
Clause 150 is the last clause in division 2.
Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Clause 150 simply allows various measures to come into force. There are two different dates: one is for pension benefits and the other is for changes to the general framework for unclaimed amounts.
Conservative
Ted Falk Conservative Provencher, MB
Thank you, Mr. Chair.
I am wondering why you don't have a specific date attached to both subclause 150(1) and subclause 150(2) in clause 150. Is there anticipation as to when the Governor in Council will make that order, or can we expect them to sit on it for years? Why is there not a date?
Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
That is a good question, Mr. Falk. Thank you very much.
There is no date because we are currently working with the Bank of Canada to make sure the systems are aligned with our requirements. We're working with them, and it should come into force really soon—as soon as we can ensure the programs are ready to take the new information we require.
In terms of the pension, however, there is a bit more work to be done. That's why we are asking for a separate date.
Conservative
Ted Falk Conservative Provencher, MB
Okay. Then the intent isn't just to sit on it and then pull it out when you need it. It's due process.
Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Not at all. We are already working on it, and as I have told you, the systems are being changed right now.
Liberal
The Chair Liberal Wayne Easter
Thank you.
Shall clause 150 carry on division?
(Clause 150 agreed to on division)
(On clause 151)
Liberal
The Chair Liberal Wayne Easter
Thank you very much, Mr. Moreau. I don't know if you're here for the next one or not, but in any event, we're on division 3, “Budget Implementation Act, 2018, No. 2”. We're at clause 151.
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
Hi, Mr. Chair. It's Erin O'Brien, and I'm happy to take the committee through the next two clauses.
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
Division 3 proposes a technical amendment to the scope of the financial consumer protection framework that is outlined in the Bank Act. Specifically, clause 151 amends the Bank Act by adding a subsection following section 627.1 to clarify that the statutory right to cancel a contract with a bank only applies to retail consumers, which are individuals and small and medium-sized businesses, and excludes large businesses.
Liberal
Conservative
Ed Fast Conservative Abbotsford, BC
The obvious question is, have you defined what a retail consumer is? I know you've done it in broad terms. Is that actually spelled out?
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
The intention is that a retail consumer means a specific individual or small business, so that's who the financial consumer protection framework applies to. Right now, under the Bank Act, the language is ambiguous. We're bringing forward this technical amendment just to clarify that large businesses would not be eligible for the right to cancel a contract automatically.
Conservative
Ed Fast Conservative Abbotsford, BC
In the interests of less ambiguity, you've used the term “small and medium-sized businesses”. Is that defined anywhere so that it's clear that we're not talking about larger businesses?
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
What we do through this amendment is that instead of defining a small or medium-sized business, we define a large business, and we chose to do that because that definition currently exists in the Bank Act.
I think I have the definition right here. A large business would mean a business with authorized credit of more than $1 million, more than 500 employees and annual revenues of more than $50 million.
Conservative
Ted Falk Conservative Provencher, MB
Just for clarity, Ms. O'Brien, they have to meet all three of those thresholds and not just one. Is that correct?
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
That's correct.
Liberal
The Chair Liberal Wayne Easter
Shall clause 151 carry on division?
(Clause 151 agreed to on division)
(On clause 152)
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
Clause 152 is simply coordinating amendments to in essence give effect to clause 151. It's a bit complicated here, because currently the financial consumer protection framework is not yet in force, and so in essence this would just bring the amendment into force at the time when that framework comes into force.
Liberal
The Chair Liberal Wayne Easter
I see no questions.
(Clause 152 agreed to on division)
(On clause 153)
Liberal
The Chair Liberal Wayne Easter
We'll turn, then, to division 4, “Sunset Provisions”. There are no amendments. Do we want to see clauses 153 to 157 as one?